The Flight to Safety Hits a Ceiling

Charts show little, if any, room for further price gains and yield declines in Treasuries.

U.S. Treasury securities prices have soared in the past two months amid deepening concern about the European debt crisis and softer domestic economic data. Indeed, since mid-March, the price of the iShares Trust Barclays 20+ Year Treasury Bond exchange-traded fund (ticker: TLT) has gained roughly 10%. For fixed-income related securities, that is quite a large move.

The problem is that this market has already reached the price ceiling...